Stipulation of Settlement Property Tax Appeal_Lowe's Home Centers, Inc. Copyright 2014
City of Dubuque Consent Items # 13.
ITEM TITLE: Stipulation of Settlement Property Tax Appeal
SUMMARY: Senior Counsel recommending approval of the Stipulation
of Settlement for a property tax appeal filed by Lowe's
Home Centers, I nc., for property located at 4100 Dodge
Street.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve
ATTACHMENTS:
Description Type
Staff Memo Staff Memo
Stipulation of Settlement Supporting Documentation
Notice of Voluntary Settlement Supporting Documentation
Barry A.Lindahl,Esq.
Senior Counsel Dubuque THE CF
Suite 330,Harbor View Place DU6B
300 Main Street AM-Am flcaNy
Dubuque,Iowa 52001-6944
(563)583-4113 office Masterpiece on the Mississippi
(563)583-1040 fax
balesq@cityofdubuque.org 2007.2012•2013
December 22, 2016
Mayor and Members of the City Council President of the Board of Directors
of the City of Dubuque Northeast Iowa Community College
City Hall P.O. Box 400
13th & Central Avenue Calmar, IA 52132
Dubuque, IA 52001
Chairperson of the Chairperson of the Board of Trustees
Dubuque County Board of Supervisors Dubuque County Hospital
Dubuque County Courthouse Sunnycrest Manor
720 Central Avenue 2375 Roosevelt Street
Dubuque, IA 52001 Dubuque, IA 52001
Chairperson of the School Board Chairperson of the Council of the
Dubuque Community School District Dubuque County Agricultural Extension
Central Administration Offices Service
2300 Chaney Road 14742 Hwy. 20 West, Suite 2
Dubuque, IA 52001 Dubuque, IA 52003
Chairperson of the Conference Board
of the City of Dubuque
City Hall
13th & Central
Dubuque, IA 52001
RE: Lowe's Home Centers, Inc. vs. City of Dubuque Board of Review
2015 Property Tax Appeal — Dubuque County Court Case No. EQCV103160
Enclosed is a copy of the Stipulation of Settlement regarding a tax assessment appeal
filed by Lowe's Home Centers, Inc. Iowa Code 441.44 requires that the Stipulation of
Settlement be served upon each of you.
There is one property that is the subject of the appeal.
The property is the Lowe's property located at 4100 Dodge Street, parcel number
10328376008. The property sits on 24.43 acres and has a one-story concrete block
steel frame, building with 133,701 square feet. It also has a one-story fiberglass/steel
greenhouse area used as a garden center containing 6,804 square feet. The building is
used by Lowes as a large big box retail building. The building has minimal finish, no
ceiling finish and a concrete floor. The building was built in 1996 and has a land to
building ratio of 7.57 to 1. The useable portion of the land is approximately 90% of the
parcel size, land on the south side is unusable. The assessed value for January 1, 2015
was $7,362,870.
Lowe's protested to the City of Dubuque Board of Review from the January 1, 2015
assessed value. Lowe's protested that the assessment was too high because, in Lowe's
opinion, the value of the property was not $7,362,870 but rather was $3,250,000.
Lowe's based the protest on a preliminary value conclusion performed by an appraiser.
The Board of Review denied the petition and the assessed value remained at
$7,362,870. Lowe's filed an appeal with the Iowa District Court for Dubuque County.
In the Fall of 2015, a 12% equalization order was placed on all commercial property in
the City of Dubuque by the Iowa Department of Revenue, raising the 2015 assessed
value of the Lowe's property to $8,246,414.
An appraisal was completed for Lowe's by Laurence G. Allen of Allen & Associates of
Troy Michigan. Mr. Allen reached a value conclusion of $3,690,000 for the January 1 ,
2015 assessment date.
Bob Felderman completed an appraisal for the Board of Review and reached a
conclusion of $5,500,000.
The Board of Review hired Dennis Cronk of Cook Appraisal, Iowa City to perform a
second appraisal. Mr. Cronk reached an appraised value of $8,350,000 for the January
1, 2015 assessment date.
The values can be summarized as follows:
Cronk (Board) appraisal $8,350,000
Value after 12% equalization order $8,246,414
January 1, 2015 assessed value $7,362,870
Felderman (Board) appraisal $5,500,000
Lowe's appraisal $3,690,000
Based on the wide range of appraised values, the Assessor recommended that the
Board pursue a negotiated settlement of the appeal.
Based on the Assessor's recommendation, the Dubuque City Board of Review and
Lowe's have reached a proposed settlement for an assessed value of $7,362,870 for
2015 and 2016. This value is $1,862,870 above the initial appraisal performed for the
Board of Review and falls very much in line with the value per square foot that was used
by the Board to settle the Menards appeal earlier this year. The settlement is
$1,516,200 higher than the average of the three appraisals.
The settlement will result in a reduction in assessed value of $883,544 for the 2015
assessment year from the 2015 assessment. This settlement will mean a tax loss to all
of the taxing bodies of$27,044 for the upcoming year.
Pursuant to the Stipulation of Settlement, this appeal will be dismissed and the
assessed value will be adjusted to $7,362,870 for parcel 1028376008 for the 2015 and
2016 assessment years. The value will be allocated as follows: land value of
$1,769,566' building value of$5,593,304.
The proposed settlement will be presented to the District Court after fourteen days from
the date indicated on the attached Notice of Voluntary Settlement. If there are any
objections to the settlement they should be made known to the District Court prior to
that time.
If you have any questions about the proposed settlement, please contact City Assessor,
Rick Engelken at (563)-589-7800.
Very incerely,
Barry A. Lindahl, Esq.
enior Counsel
Enclosure
cc: Michael C. Van Milligen, City Manager
Kevin Firnstahl, City Clerk
Rick Engelken, City Assessor
FAUsers\tsteckle\Lindahl\Tax Appeals\Lowes 2015\Settlement Docs\ChairperMayorPres_122216_Agenda.doc
IN THE IOWA DISTRICT COURT IN AND FOR DUBUQUE COUNTY
LOWE'S HOME CENTERS, INC.,
Plaintiff,
VS. CASE NO. 01311 EQCV103160
DUBUQUE CITY BOARD OF REVIEW,
Defendant.
STIPULATION OF SETTLEMENT
Plaintiff Lowe's Home Centers, Inc., and Defendant Dubuque City Board
of Review, state to the Court that the pending litigation with regard to the tax
assessment for the following-described property as of January 1, 2015:
Parcel No. 1028376008
(locally known as 4100 Dodge Street, Dubuque, Iowa)
has been settled and agreed upon as follows:
Valuation:
Land $1,769,566
Building $5,593,304
Total $7,362,870
It is further agreed that the Valuation of $7,362,870 shall be effective for
January 1, 2016.
It is further agreed that upon entry of a Court Order confirming the above
settlement, the above pending litigation shall be dismissed with prejudice and the
costs shall be paid by Plaintiffs.
Dated this day of &tn,-, 2 ' 2016.
LOWE'S HOME CENTERS, INC., DUBUQUE TN' BOARD OF REVIEW
By: By:
Todd P. L Esq. renna M. Brumwell, Esq.
Faegrefaker aniels LLP Suite 330, Harbor View Place
801 Gragd venue, 33rd Floor 300 Main Street
Des Moines, IA 50309-8003 Dubuque, IA 52001
IN THE IOWA DISTRICT COURT IN AND FOR DUBUQUE COUNTY
LOWE'S HOME CENTERS, INC.,
Plaintiff,
VS. CASE NO. 01311 EQCV103160
DUBUQUE CITY BOARD OF REVIEW,
Defendant.
NOTICE OF VOLUNTARY SETTLEMENT
TO: City of Dubuque, Iowa
County of Dubuque, Iowa
Dubuque Community School District
Northeast Iowa Community college
Dubuque County Hospital
Dubuque County Agricultural Extension Service
Conference Board of the City of Dubuque
YOU ARE HEREBY NOTIFIED, pursuant to Iowa Code Section 441.44,
that the above-named Plaintiff and the Dubuque City Board of Review,
Defendant, have entered into a voluntary settlement of this assessment appeal.
A copy of the proposed Stipulation of Settlement is attached hereto.
This Stipulation of Settlement will be presented to the Court for approval
no sooner than fourteen days from the date of this Notice.
Dated this 22nd day of December, 2016.
Dubuque Ci Board of Review,
Defend
B rry A. Lindahl, Esq., Senior Counsel
S ite 330, Harbor View Place
300 Main Street
Dubuque, IA 52001-6944
(563) 583-4113